Which of the following statements are correct with respect to the unrelated business income tax?
A) Under certain circumstances, a corporate sponsorship payment can be classified as not being an unrelated trade or business.
B) Under certain circumstances, a casino game can be classified as not being an unrelated trade or business.
C) Under certain circumstances, the exchanging or renting of membership lists to other exempt organizations can be classified as not being an unrelated trade or business.
D) Only a. and c. are correct.
E) a., b., and c. are all correct.

Question

Quizplus · Accepted Answer

Option A is correct, as corporate sponsorship payment is not considered an unrelated trade or business if there is no substantial advertising involved. Option B is incorrect, as a casino game does not fall under any exempt purpose and hence would be considered as an unrelated trade or business. Option C is correct, as exchanging or renting membership lists to other exempt organizations can be considered as related business activity if there is no additional cost or efforts involved in doing so. Therefore, only option A and C are correct, making option D the correct choice.

Which of the Following Statements Are Correct with Respect to the Unrelated